Uber, Ola commence operations in Kashmir

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Srinagar, December 15

In a move set to bring added convenience for local residents as well as tourists, global ride-sharing giants Uber and Ola have officially launched their operations in Kashmir. While many have applauded this development, local cab service providers are apprehensive about the potential impact on their business.

Uber and Ola, who provide app-based transportation services, have entered into the Kashmir market with their official apps now displaying the availability of cabs for passenger service in the region. Despite the absence of an official announcement from the global ride-hailing giant, at least five cabs are currently operational in various locations for both the cab aggregators.

Joint Transport Commissioner Vinay Samotra confirmed that the cab service providers have been issued licenses to start operations in Jammu and Kashmir.

“Uber and Ola have been issued licenses by the department. They are now authorised to begin their operations in Kashmir,” he stated.

Several months ago, Ola and Uber expressed interest in launching their cab services in the Union Territory of Jammu and Kashmir. They urged the government to notify rules to facilitate the completion of all formalities for the start of operations. Subsequently, the Transport Department announced the J&K Motor Vehicle Aggregator Rules, 2023.

Meanwhile, the entry of Uber and Ola have raised concerns among local cab service providers operating in Kashmir. These locally-run start-ups fear that the arrival of global giants will result in significant losses for them.

“We are a local start-up, with a major portion of revenue coming from tourism. A multinational company like Uber or Ola will deal a huge blow to us. Their entry into the local market means that they will eat our revenues,” said Basit Qayoom, managing director of a local cab service.